CPI & Inflation Calculator
Activity Description
This worksheet activity allows students to explore the concept of inflation and its impact on the value of money. The worksheet contains an inflation calculator in which students can choose an Initial Year and Month, then enter the amount, and choose another Year and Month, then the calculator will show the depreciated value of money based on the CPI (Consumer Price Index) data. The activity helps students see how prices change over time and how inflation erodes the purchasing power of money.
This is how the worksheet looks -
Detailed instructions guide students through using the calculator, promoting an understanding of economic concepts and real-world financial literacy. This hands-on exercise is designed to be engaging and educational, fostering critical thinking about economic changes.
Learning Objective
In this worksheet, students will use the CPI-based inflation calculator to calculate the value of the money at two different periods. Students will enter an amount and initial month and year at which they have that amount, then select a target month and year, then the calculator will provide the new amount they need for the same purchasing power.
The learning objective of this activity is for students to understand the concept of inflation and its impact on the value of money over time. By using the CPI-based calculator, students develop the ability to analyze historical inflation rates and apply this knowledge to make informed financial decisions regarding savings, investments, and purchasing power.
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